spinoffs

A spinoff takes place when a company decides to get rid of a portion of its asset base, possibly because it wants to focus its activities elsewhere, but is unable to sell the assets for a price that it feels reflects their value. Instead, the parent company sets the assets up as a separate company, then hands out shares in that publicly listed firm to its current investors.

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Introduction


Successful Investors always give dividend stocks the respect they deserve and most view them as the foundation of a sound and profitable investment portfolio.

But finding the right dividend payers can be challenging for new investors as well as experienced ones....
As our subscriber, you know that ACI Worldwide and Broadridge are not household names. Still, you also know that does nothing to diminish the vital role they play for corporations relying on their back-office supports.


In addition, you should know that both of these service providers have business models that will let them prosper despite COVID-19’s huge economic and social impact.


That’s why we continue to see both ACI Worldwide and Broadridge as buys for your future gains.


ACI WORLDWIDE, $24.32, is a buy. The company (Nasdaq symbol ACIW; TSINetwork Rating: Extra Risk) (www.aciworldwide.com; Shares outstanding: 116.1 million; Market cap: $2.9 billion; No dividends paid) makes software for processing transactions by credit cards, debit cards, automated teller machines, point-of-sale terminals and interbank systems....
Despite the COVID-19 outbreak, Goodfood continues to gain more and more customers. The stock is now up almost 20% for investors since we first recommended it in our December 2019 issue of Power Growth Investor at $3.02.


Goodfood’s stellar results in the latest quarter came before the COVID-19 virus really began to force Canadians to stay home....
Most stocks have dropped in the current market downturn, but we feel top-quality shares will be among the first to rebound. However, some, including Nissan, have severe problems in their markets that will likely block recovery anytime soon. Others, like Luckin Coffee, have big internal issues that limit their growth prospects ahead....
Alimentation Couche-Tard has rewarded our subscribers with big gains over the years. We first recommended it in our December 2008 issue at $15.50. Since then, the stock has split 3-for-1 and 2-for-1. That takes our cost down to $2.58 a share—which gives you a scintillating 1,363.6% gain!


The stock has dropped recently from the all-time high of $46.10 it hit in February of 2020....
Amazon.com has now jumped to a new all-time high for our subscribers, including a 42% bounce from the bottom it reached during the recent downturn.


Investors now realize, more than ever, that the company’s dominance in e-commerce—through its aggressive retail strategies, massive distribution power and strong Prime program—will continue to build momentum in the wake of the coronavirus.


Furthermore, it continues to solidify its dominance in the cloud through its Amazon Web Services unit; its investment in Alexa virtual assistant AI technology further sets it up for a major role in the use of voice interfaces by individual consumers but also e-commerce retailers.


AMAZON.COM INC....
Thermo Fisher’s shares have bounced back from their drop during the March market meltdown. They’re now up 22.1% over the last year.


The fundamentals that made Thermo Fisher a good investment before the COVID-19 downturn remain. And now, the company has just received FDA approval for its coronavirus test....
HP INC. $15 is a hold. The company (New York symbol HPQ; Manufacturing sector; Shares outstanding: 1.4 billion; Market cap: $21.0 billion; Dividend yield 4.5%; Takeover Target Rating: Medium; www.hp.com) took its current form on November 1, 2015, when the old Hewlett-Packard Co....
Foodmaker Post Holdings recently initiated a “carve-out,” using an IPO to sell a portion of its active nutrition business, BellRing Brands. That now pure-play firm makes protein bars, shakes and nutritional supplements.


Post used the proceeds from the sale to pay down its debt and strengthen value for investors....
The stock market turmoil caused by COVID-19 will likely prompt many companies to postpone their upcoming spinoffs or strategic sales. Even so, when business conditions improve, we expect Vonage and Archer Daniels to follow through with their own plans to add investor value.


VONAGE HOLDINGS CORP....